Time Value of Money (TVM) is the first and the most important of lessons that you should ever learn in finance.
- TVM is Money received today is greater than money received tomorrow because of money has time value. Eg. USD 100 today is not USD 100 a year later
- TVM is the reward for the postponement of consumption of money.
- TVM is aggregate of inflation rate, real time return from risk free investment and risk premium.
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